BARU GOLD Signs Production Operation Contract
News Release
August 8, 2023 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
BARU GOLD SIGNS PRODUCTION OPERATION CONTRACT
Vancouver, BC - Baru Gold Corp (“Baru” and its subsidiary PT. Tambang Mas Sangihe (“TMS”)
or the “Company”) is happy to announce to shareholders that mining contractor CV. Mahamu Hebat
Sejahtera (the “Contractor”) has signed a legally binding contract to o perate and produce gold on
Sangihe Island.
There were no substantial changes between this contract signed August 4, 2023 and the intent of the
Memorandum of Understanding, announced on August 3, 2023 . However, in the interest of
shareholders, the Company has decided to allocate the 65 ha in multiple phases. In the Company’s
estimation, exclusive operations within the entire mining concession was too significant a risk.
The Company will award subsequent land allocations in a competitive process that will include other
interested parties. This allocation method gives the Company greater control, assurance of the
Contractor’s legal and environmental compliance, and also the option for the Company to develop
their own operation.
This first phase with the Contractor involves only 15 ha of the 65 ha area. The Contractor will use
their own capital to operate and expand an existing mining operation. For the exclusive contracting
right within the prescribed area, the Contractor will pay the Company approximately CAD $670,000.
The payment is based on both the land area and estimated gold content. The payment will be as
follows:
i. IDR 1,000,000,000 (CDN$88,000)(1) as the first payment to be paid at the time of signing
of the agreement as a non-refundable deposit
ii. IDR 3,250,000,000 (CDN$286,000)(1) as the second payment to be paid when the Contractor
starts carrying activities on the land area.
IDR 3,250,000,000 (CDN$286,000)(1) as the third payment to be paid 30 days after the
second payment.
(1) At the conversion rate of the Bank of Canada on August 4, 2023 of IDR 0.000088 to
CDN$1.00
The Contractor will immediately begin operations by restarting a recently producing gold mine
within the contracted 15 ha . With all the equipment already on site, land cleared, and construction
complete, operations will start immediately. The Contractor anticipates the operation will begin
generating cash flow within two months.
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6E 0C3
The Contractor is responsible for all operational, production and site remediation expenses. As the
result of their responsibility for operational expenses, they will receive 65% of the total gross receipts
from the sale of gold recovered. Under the terms of the agreement, t he Company will receive 35%
of the total gross receipts from the sale of gold recovered.
The Company will supervise all activities and co-process the gold. The Company will be responsible
for refining the gold and distributing the resulting funds . The Contractor must abide by the same
environmental and reclamation standards required of the Company by Indonesian law, including
mercury prohibition.
The Company negotiated the phased allocation of land with the Contractor. The $670,000 will be
used for the Company’s near-term obligations. In addition, the area reduction has no impact on near-
term cash flow as the Contractor can operate at maximum production capacity on 15 ha for the next
12 months. This contract for 15 ha does not prevent the Company from opening or contracting out
additional worksites.
The Company retains complete control of the Sangihe Project. The Company’s Contract of Work
includes an area of 42,000 ha, of which 23,000 ha is gold bearing.
In the event of a regulatory cessation of work occurring prior to the due date for the second payment,
the agreement shall be automatically terminated. In such an instance, both the second and third
payments specified within the agreement will be deemed non-payable.
Mr. Terry Filbert, CEO of Baru Gold, commented, “This arrangement is a win for the environment,
the Company, and for Indonesia. By licensing a previously unpermitted mine, the Company is raising
the legal protections for workers and forcing environmental protections and rehabilitation on
Sangihe, including the clean-up of and prohibition of mercury. Mining on Sangihe has a long history
and this is the first time any mine on the island has followed environmental standards and
protections, including ecological restoration. The Company has the opportunity to achieve cash flow
almost immediately, with no dilution to shareholders. The local community will very quickly feel the
distribution of wealth. I look forward to being in production and building long -lasting and
productive relationships with the residents of Sangihe and our new contractor.”
The Company is fully permitted and legally entitled to operate, hire contractors and produce gold on
Sangihe Island. We are committed to doing so in a safe manner, following environmental regulations
outlined in our Environmental Permit.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project ( “Sangihe”) is located on the Indonesian island of Sangihe, off the
northern coast of Sulawesi. Sangihe has an existing National Instrument 43 -101 inferred mineral
resource of 114,700 indicated and 105,000 inferred ounces of gold, as reported in the Company's
“Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone
Deposits, Sangihe Project, North Sulawesi, Indonesia ” (May 30, 2017). Readers are cautioned that
mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Company intends to proceed to production without the benefit of first establishing mineral
reserves supported by a feasibility study. The Company cautions readers that the any production
decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves
that demonstrates economic and technical viability and as such, there may be involved increased
uncertainty and various technological and economic risks
The Company's 70-percent interest in the Sangihe-mineral-tenement Contract of Work (“CoW”) is
held through PT. Tambang Mas Sangihe (“TMS”). The remaining 30-percent interest in TMS is held
by three Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon
commencement of the production phase of the project.
Baru has met all the requirements of the Indonesian government and has been granted its
environmental permit.
ABOUT BARU GOLD CORP.
Baru Gold Corporation is a dynamic junior gold developer with NI 43 -101 gold resources in
Indonesia, one of the top ten gold producing countries in the world. Based in Indonesia and North
America, Baru’s team boasts extensive experience in starting and operating small-scale gold assets.
BARU GOLD CORP
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
For invest or contacts more information, please
contact:
Kevin Shum Investor Relations
647-725-3888 ext 702
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Certain statements in this News Release, which are not historical in nature, constitute “forward
looking statements” within the meaning of that phrase under applicable Canadian securities law.
These statements include, but are not limited to, statements or information concerning future
work programs, results and timing of any work programs, the Company’s performance or events
as of the date hereof. These statements reflect management’s c urrent assumptions and
expectations and by their nature are subject to certain underlying assumptions, known and
unknown risks and uncertainties and other factors which may cause actual results, performance
or events to be materially different from those expressed or implied by such forward looking
statements. Those risks include the interpretation of drill results; the geology, grade and
continuity of mineral deposits; the possibility that future exploration, development or mining
results will not be consistent with our expectations; commodity and currency price fluctuation;
failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant
conversion factors, permitting and licensing risks; general market and mining exploration risks
and production and economic risks related to design and engineering, manufacturing,
technological processes and test procedures and the risk that the p roject’s output will not be
salable at a price that will cover the project’s operating and maintenance costs. Forward-looking
statements should not be construed as investment advice. Readers should perform a detailed,
independent investigation and analysis of the Company and are encouraged to seek independent
professional advice before making any investment decision. Accordingly, readers should not place
undue reliance on any forward-looking statement. Except as required by applicable securities
laws, the Company disclaims any obligation to update or revise any forward looking statements
to reflect events or changes in circumstances that occur after the date hereof.